Political uncertainly, economic suicide

ENAR

As Lebanon ended the year 2006 in a spell of indecision and instability, alarmingly little attention was given to what arguably may be, short of war, the most debilitating result of the country’s political deadlock: economic collapse. The giant bubble of confidence that has, miraculously, kept Lebanon afloat financially in the last decade will not last forever. Reportedly, that stark message was transmitted by Central Bank Governor Riad Salameh to political leaders involved in the national dialogue last November. Salameh warned that the country’s finances could not withstand much more political bickering. As Hizbullah and the anti-Syrian parliamentary majority went at each other over expanding the government, the main economic representative institutions began sounding the alarm bells—and it’s easy to see why. Heavy losses from the summer’s war According to some United Nations estimates, Lebanon may have endured losses of over $10 billion during the summer war. Economists have calculated